By Brazil Stock Guide – Log Commercial Properties (LOGG3), a Brazilian developer and operator of logistics warehouses, reported a sharp decline in fourth-quarter profit, even as the company delivered record operating performance for the full year and continued expanding its development pipeline.
Net income attributable to shareholders fell 29.5% from a year earlier to 70 million reais in the three months ended December. For full-year 2025, profit rose 3.3% to 354.6 million reais, landing within the company’s previously announced guidance range of 350 million to 450 million reais.
Net revenue increased 14.9% in the quarter to 65.2 million reais. Over the full year, revenue climbed 13.2% to 248.8 million reais.
EBITDA rose 3.9% in the quarter to 148.1 million reais, though EBITDA margin declined to 227.1%, down 27.9 percentage points from the same period a year earlier. For the full year, EBITDA jumped 22% to a record 602 million reais, with margin expanding 17.4 percentage points to 242%, marking the strongest annual result in the company’s history.
Gross margin in the quarter slipped 1.4 percentage points to 96.2%. For the year, the metric edged down 0.4 percentage points to 97.2%.
Log CP said its average rental rate increased 4.6% year-on-year in the fourth quarter to 22.76 reais per square meter per month. For 2025, the average leasing rate rose 6.4% to 21.88 reais.
The company’s stabilized vacancy rate, measured over the past 12 months, stood at 0.81%, compared with 0.65% in 2024.
During the quarter, Log CP delivered 98,400 square meters of logistics warehouses, with 88% pre-leased. Over the full year, the company delivered seven assets totaling 286,900 square meters.
Log CP ended 2025 with 525,200 square meters under construction and an additional 559,800 square meters in its land bank for future development. The company’s growth plan targets 2 million square meters of deliveries from 2025 through 2028.
“It is natural that there will be growth over the four-year period,” CEO Sergio Fischer said, noting that the company used 2025 to acquire land and secure approvals for new projects. “We have many construction projects to start this year,” he said, adding that deliveries could “eventually” exceed the company’s forecast.
Leverage increased over the year. Net debt to adjusted EBITDA ended 2025 at 1.6 times, double the level reported at the end of 2024.
Fischer said a transaction announced on Wednesday (11) involving the sale of 12 assets into a new 1 billion-real investment vehicle is expected to reduce leverage to below the 2024 level.
“We have an investor providing a firm purchase guarantee for these assets,” Fischer said, declining to name the investor because the offering will be public. “If you take the balance sheet and add 1 billion reais in cash, it becomes net cash, with zero leverage, but until completion we will have made additional investments,” he said.
Log CP’s property management unit also expanded rapidly. The business ended 2025 with 2.6 million square meters of gross leasable area under management, a 45% increase from the previous year. About 20% of that portfolio consists of third-party warehouses not developed by Log CP.
“We expected to reach 3 million square meters under management by the end of the year, but we may reach that by the end of the first half,” Fischer said.
Revenue from services, including warehouse management, rose 47% in 2025 to 21.8 million reais, with a margin of 68%, the company said.
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